The real estate market is seeing notable developments in policy, housing supply and demand. For old apartment buildings constructed in 1994 or earlier, apartment owners may receive compensation in the form of housing, land or money when the buildings are demolished, but they are not allowed to contribute funds themselves to rebuild them. Residents’ ownership rights also do not automatically disappear when an apartment building reaches the end of its service life, while the legally defined service life of a building is at least 50 years. In Ho Chi Minh City, many homebuyers are willing to leave central areas to seek larger living spaces and more suitable prices in suburban areas and new urban developments. However, although supply in Ho Chi Minh City and many localities has increased sharply, primary housing prices remain high because product structures, development costs and profit expectations have not changed. Some affordable apartments have been discounted by several hundred million...
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